FREQUENTLY ASKED QUESTIONS
1. What is a School Bond? School districts are required by state law to ask voters for permission to sell bonds to investors to raise capital for large projects and purchases such as new construction, renovations, or transportation (buses and vehicles). Essentially, it’s a loan, paid back with the I&S tax rate over a period, much like a family takes out a mortgage for their home.
2. Can Bond Dollars be Used for Salaries? No, the I&S tax rate, by law cannot be used for salaries or ongoing operating expenses. Salaries, utilities, student learning supplies and other ongoing operating expenses are paid for by the M&O tax rate. The state dictates the M&O tax rate and the amount of money the school district receives from that rate.
3. If the State determines the M&O Tax Rate, do they have a say in the I&S Rate? No, the only input the State has on our I&S Tax Rate is that we cannot pass or sell bonds that would require the Board of Trustees to set an I&S Rate of more than $0.50. Outside of that, I&S tax dollars stay within the District.
4. What is the anticipated Tax Rate increase for this bond? The anticipated tax rate increase with this bond is $0.30. To know how this tax rate increase will impact you, please visit the Tax page. Along with tax impact charts, there is a calculator where you can input your property value and receive your personalized tax impact.
5. How will this Bond impact me if I am over 65? If you are over 65 and have applied for the available tax freeze, this bond will not impact your homestead taxes. For questions on how to apply, please contact Upshur CAD at (903) 843-3041 and Wood CAD at (903)763-4946. Please be aware, you must apply for the exemption.
6. What happens if the bond does not pass? Harmony ISD will continue to educate all kids as we can and teach them to be proud Eagles. We will continue to maintain our current facilities and find creative ways to accomplish smaller projects as our limited resources allow.